Gem and jewellery exports up 9% compared to 2019 in April-May period
India’s gem and jewellery exports increased by 9% in rupee terms in April to May 2021, compared to April to May 2019. Studded gold jewellery and cut and polished diamond exports rose, but plain gold jewellery exports dropped.
The first two months of the 2022 financial year, from April to May, saw recovery in some sectors of the jewellery export industry with others still affected by the pandemic. May this year was more challenging than April, with numerous categories seeing exports drop, due to the effects of local lockdowns across India on manufacturing operations.
Studded gold jewellery grew by 41% in dollar terms (49% in rupee terms) and cut and polished diamond exports grew by 21% (27% in rupee terms) but plain gold jewellery dropped by a significant 71% (69% in rupee terms) in April/May 2021 compared to April/ May 2019, the Gem and Jewellery Export Promotion Council announced on its website. The GJEPC cites continued pandemic restrictions and a lack of tourists in areas such as Singapore, Dubai, and Malaysia as having a major effect on plain gold jewellery exports.
“The revival of exports has happened due to the opening of international markets, resurgent demand and strong unstinted support from the Government of India on various issues,” said GJEPC chairman Colin Shah, the traders’ body reported.
“Some of the pro-industry announcements include the reduction in import duties on various rough gem and jewellery commodities viz. gold bars, silver bars, palladium, gold and silver findings etc., the revamped Gold Monetisation Scheme and extension of Interest Equalisation Scheme (IES) for Pre and Post shipment Rupee Export Credit for three months.”
Export growth at the beginning of FY22 was driven mainly by the Domestic Tariff Area, which witnessed a 15% growth in exports compared with the 31% drop in exports recorded from Special Economic Zones.
“We are hopeful that with the support provided by the government and GJEPC’s continued efforts by way of organising various trade shows and resolving day-to-day challenges of trade members, exports would bounce back in the coming months,” said Shah.
“Furthermore, GJEPC is organising one of its key trade shows in the month of August 2021 in Dubai which would further enhance morale of the Indian manufactures and traders and boost their export business.”
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